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USD 1 = NOK 7.00 No. 11 - 23 March 1993
CONTENTS:
A helping hand to Bosnia (1)
Left turn for Centre Party (2)
Healthy trade surplus (3)
New contracts consolidate Raufoss's leading position (4)
Two billion will see Lillehammer Olympics (5)
Handsome profits for Telegraph Administration (6)
Expert group will visit stricken Russian town (7)
Upturn in '94? (8)
Idle funds cost Norway millions (9)
Norwegian-Russian art centre in Kirkenes (10)
Royal support for whaling (10)
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. This is our last news bulletin before Easter. The next Basic Information
. Service will be issued on 12 April. We wish all our readers a Happy Easter.
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norinform/1 23 March 1993
A HELPING HAND TO BOSNIA
Norway has recently completed a refugee aid project in Zenica - in the heart
of Bosnia - which is only surpassed in size by projects under the aegis of
the USA and the UN. Of the overall total of USD 21 million which Norway
has allocated to the former Yugoslavia, nearly 50 per cent has been
channeled to aid programmes in Zenica, one of the few towns where Muslims,
Croats and Serbs still live side by side. Though the town is formally under
Muslim control, Zenica's Muslim population is suffering from acute
social problems arising out of crippling unemployment and unfortunate
developments at the front. Added to this, Zenica must absorb an
increasing flow of refugees from east Bosnia. Norway's aid programme to the
hard-hit town is the first of the international projects started in
Zenica, which has been completed.
State Secretary Jan Egeland at the Ministry of Foreign Affairs was
recently present when refugees in Zenica took over from Norway 3,000 strong,
well-built homes. Some of these had been delivered by Norwegian
prefabricated house manufacturers, while others were a result of
rehabilitation of a former mining village. Norway has also provided most
of the USD 1.4 million which financed a large-scale health programme in the
town. The money was spent on health and first-aid stations, medicines
and medical equipment.
"Cooperation with the authorities in Zenica has been excellent. This is
largely due to the quality of the houses we have delivered and to the
efficiency of the teams sent out by the Norwegian People's Relief
Association," says Jan Egeland.
(norinform)
norinform/2 23 March 1993
LEFT TURN FOR CENTRE PARTY
At its annual meeting recently, Norway's Centre Party, which changed its
name from the Farmers' Party in 1959, voted for a programme which
observers characterize as a radicalization. It is even being said that the
Centre Party has placed itself between the Socialist Left Party and the
social democratic Labour Party on the political scale. The programme is
associated with a demand for strong public control of the economy in place of
market liberalism, cuts in imports and exports, greater emphasis on
self-sufficiency and defence of national resources behind trade barriers,
as well as the resumption of currency controls to curb foreign takeovers of
Norwegian firms. Party spokesmen hope that these policies will hamper EC
adjustments and rapprochement.
Many of the party's proposals would lead to increased public expenditure.
The agrarian party's financial spokesman, Gudmund Restad, provoked fellow
Centre delegates by concluding that they had chosen an economic policy
which might be termed slightly irresponsible. The party also suggests that
public employees with salaries above NOK 250,000 should have their income
cut by 2 per cent.
Researcher Hillmar Rommetvedt says that the party has moved far to the left,
but the change is partly caused by the rightward shift of the other
parties. The chairman of the Standing Committee on Finance in the Storting,
Per-Kristian Foss (Conservative), accused Centre of having opted out of
participation in any serious debate about the Norwegian economy.
(norinform)
norinform/3 23 March 1993
HEALTHY TRADE SURPLUS
Exports worth USD 2.48 billion in February have helped to push the surplus
on Norway's balance of payments up to USD 1.44 billion for the first two
months of this year, an increase of USD 428 million on the same period
last year (all figures at the current USD exchange rate - approx. 7 kroner
to the dollar). Ships and offshore oil platforms are not included in the
statistics.
Fish exports increased the most, with February figures reaching USD 157
million. This brings the total increase for this commodity up to USD 50
million in comparison with 1992. Tipping the balance the other way were
iron and steel where there was a drop in exports of USD 51 million
compared to the 1992 figures.
Exports of North Sea crude have earned Norway nearly USD 2 billion so far
this year, while sales of natural gas reached almost 385 million. In
January and February oil prices were on average 8 per cent higher than in
the same period last year, though the amount exported was almost the same
(110 million barrels)
Preliminary figures for Norway's current balance indicate a surplus of
nearly USD 3 billion last year, compared to about 4.7 billion in 1991. Norway
posted a surplus of USD 7.42 billion in its trade in commodities and
services, about a billion dollars less than in 1991. But it ran a deficit
of USD 4.7 billion on interest payments and transfers - 800 million
dollars more than the previous year's deficit.
(norinform)
norinform/4 23 March 1993
NEW CONTRACTS CONSOLIDATE RAUFOSS'S LEADING POSITION
Norwegian arms manufacturer Raufoss A/S, which includes automobile parts in
its wide range of products, has contracted to deliver aluminium bumpers
worth a total of USD 140 million to German automobile manufacturers BMW and
Audi, and to the Swedish Volvo concern.
The Norwegian company was recently awarded a USD 28 million contract With
BMW for aluminium bumper beams for the company's new 300 models. Last week
another deal was signed, this time with the Audi concern, which has decided
to convert to aluminium bumpers on all its models from 1994-95 onwards. This
contract is worth USD 71 million.
Earlier this year, Raufoss signed deals to supply complete bumper systems to
the Volvo 940/960 series, a contract which will bring in a further USD 42
million.
The flow of orders since new year will double Raufoss's production of bumpers
by 1994-95, bringing production up to more than two million units a year.
The new contracts also place Raufoss at the international forefront for
this particular product. In a domestic context it will help to secure jobs.
Sales Manager Morten Holen at Raufoss believes that aluminium will
become increasingly important in automobile production. Next year Audi
plans to introduce a car made entirely of aluminium, largely constructed
from parts supplied by Raufoss.
(norinform)
norinform/5 23 March 1993
TWO BILLION WILL SEE LILLEHAMMER OLYMPICS
More than 40 countries will be covering the 1994 Winter Olympics in
Lillehammer, which means that two billion people will be able to watch the
events.
The Norwegian State Telegraph Administration has sold as many TV channels
to overseas clients as the total that were in use during the Albertville
Olympics in 1992. "We're pretty certain that more countries and channels will
be added to the total before the Games start," says project leader Ola
Toftemo in the State Telegraph Administration.
In Europe there will be transmissions to about 30 countries. The
European Broadcasting Union (EBU) has ordered three channels on behalf of
its member countries and Sweden, Finland, France and Germany, among
others, have ordered special channels. The Lillehammer Games will also be
beamed to the USA, Canada, Nw Zealand, Australia and Japan.
200 TV cameras will record everything of interest at Lillehammer during the
16 days of the Games. More than 50 national TV corporations will send images
from the various sports arenas to the radio and TV centre in Lillehammer.
There they will be edited before being sent on. The radio and TV centre
will be the operations base for more than 2,500 journalists and
technicians from 60 radio and TV stations.
(norinform)
norinform/6 23 March 1993
HANDSOME PROFITS FOR TELEGRAPH ADMINISTRATION
Norway's State Telegraph Administration announced a profit of USD 230
million last year. The year's result, pre extraordinary items, was USD 32
million less than that of the preceding year. Nevertheless, the
Administration characterizes it as highly satisfactory. With 17,700 on the
payroll, this is one of Norway's biggest workplaces.
1992 was an eventful year for the Administration, which implemented the
biggest restructuring that any Norwegian concern has put through. Further
important changes will be made this year, including a transition to
8-digit telephone numbers for all of Norway's telephone subscribers. Last
year's lucrative result will give the Administration a solid financial basis
to take on new tasks.
This year's surplus is largely ascribable to increased activity in the
satellite television sector and to a steep rise in the number of telephone
calls to and from abroad. The economic doldrums plaguing many concerns
did not affect the Telegraph Administration, which noted an increased
demand for its services. Operating income rose by USD 126 million from
1991 to reach last year's figure of USD 2.1 billion.
Tormod Hermansen, head of the Administration, claims that Norway now has
the lowest telephone rates in the world for business subscribers, adding a
promise that recent profits will result in further reductions in the price
of calls in coming years. The only black spot on the horizon is a plan to cut
personnel, but this will be effected through natural wastage only.
(norinform)
norinform/7 23 March 1993
EXPERT GROUP WILL VISIT STRICKEN RUSSIAN TOWN
At the invitation of Russian authorities, a group of Norwegian experts
is shortly to visit the plutonium works near the Russian town of Chelyabinsk,
where there is a danger that radioactive refuse may run out into the River Ob
and from there into arctic waters.
The international media have focussed strongly on Chelyabinsk in recent
weeks after Russian authorities finally admitted that leakage and radiation
from the plutonium works near the town has seriously affected the health of
500,000 local inhabitants during the last forty years. The total effect has
been described as being equal to "100 Chernobyls."
The Norwegian experts, headed by Magne Roeed of the Ministry of the
Environment, are to collaborate with Russian colleagues in assessing the
extent of dumping of radioactive waste in the northern areas. Plans are
also in hand for a joint Russian-Norwegian research project to chart nuclear
dumping in the Barents Sea and the Kara Sea.
"The reservoirs around the plutonium plant comprise the world's biggest
dumping ground for radioactive waste. In a 'worst possible case', one of
more of the dams around these reservoirs could break, sending millions
of tons of heavily polluted water into the River Ob which runs out in the
Kara Sea," says Thomas Nilsen of the Norwegian environmentalist group
Bellona. Bellona has visited the affected area a number of times. During
the Earth Summit conference in Rio de Janeiro last year, Bellona and a
group of Russian environmentalists presented the report which proved that
radioactive water was leaking from the waste dumps near Chelyabinsk.
(norinform)
norinform/8 23 March 1993
UPTURN IN '94?
Norway is unlikely to experience a stong economic upswing in 1993, but
1994 could mark a turning point. According to an OECD report, economic
growth in Norway this year will not exceed 1.3 per cent,but in 1994
this figure will probably be trebled, with growth rising to 3.8 per cent. The
main causes of this favourable turn are the reduction of the value of
the krone, a lowering of employer contributions to the national insurance
scheme and an anticipated upswing in Norway's main export markets
for metals, chemicals and wood-processing products. The growth in mainland
Norway's GDP is estimated at 1.8 per cent this year and 3.2 per cent in
1994, compared with only 0.3 per cent last year.
Figures from the Central Bureau of Statistics show that unemployment at
the beginning of March was 8.7 per cent, 123,300 being totally unemployed
while 65,038 were engaged on some form of government employment scheme. The
number of totally unemployed and those involved in government work schemes
was 17,347 more than at the same time last year. 79,064 of the jobless were
men and 42,236 were women.
The consumer price index rose 0.3 per cent from 15 January last year to
15 January this year. During the 12-month period prices rose 2.6 per
cent. The wholesale price index rose only 0.4 per cent during this
period. The Bureau's index of the value of retail sales showed a drop of 3.4
per cent. During the same period the price index for retail trading rose
2.1 per cent. (norinform)
norinform/9 23 March 1993
IDLE FUNDS COST NORWAY MILLIONS
Norway has lost millions of dollars in interest because Norwegian
development aid funds worth more than USD 71 million have stood untouched
for up to four years in bank accounts belonging to the United Nations
and to the development banks. The World Bank has already agreed to the
reimbursement of about USD 2 million in interest - minus administration
costs - which accrued in connection with particularly difficult projects
which did not go according to plan.
However, this is only a small part of the amount that the country has lost
in connection with multinational development cooperation and assistance.
Agreements that Norway has signed secure the UN and the development banks
the acccumulated interest on Norwegian development aid funds. These
resources are intended to cover administration costs.
Investigations carried out by the Office of the Auditor General have
revealed that Norway is losing substantial sums of money as a result of these
agreements. In 1990 alone, development aid funds of more than USD 71 million
stood untouched in UN and development banks; USD 25 million of this amount
had been untouched for at least one year, while the interest which
had accrued landed in the pockets of the multilateral organizations. In some
cases, funds have remained unused for as much as four years because the
World Bank and the UN system have been slow in utilizing Norwegian
assistance. (norinform)
norinform/10 23 March 1993
NORWEGIAN-RUSSIAN ART CENTRE IN KIRKENES
A Russian-Norwegian art centre which was recently opened in the North
Norwegian town of Kirkenes is one of the first tangible offshoots of
Euro-Arctic cooperation in the Barents region. Its goal is to serve as a
gathering place for young artists and a gallery for contemporary
Russian and Norwegian art. Exhibitions will vary greatly in content and,
thanks to a grant from the Total oil company, newly graduated Russian and
Norwegian art students will have an opportunity to both live and work
at the centre. The artists will be selected among graduates from academies in
Oslo, Bergen, and Trondheim, as well as the Surikova Institute in St.
Petersburg and the Repin Institute in Moscow.
(norinform)
ROYAL SUPPORT FOR WHALING
In a recent Finnish TV interview, King Harald V said that the issue of
the Norwegian Government's decision to permit a resumption whaling is
not environmental. He pointed out that Norwegian as well as foreign
scientists have concluded that the minke whale is not an endangered
species and can be harvested. The decision to resume minke whaling
confirms that Norway wishes to control its own resources, said the king.
(norinform)
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